General Moly Receives COI Approval

LAKEWOOD, CO - General Moly reported that the company has been informed by Sichuan Hanlong Group (Hanlong) that it has received a Certificate of Overseas Investment as approval from the Chinese Ministry of Commerce (MOFCOM) to invest in General Moly as a component of an overall structure to fully finance General Moly's 80%-owned share of the Mt. Hope project in Nevada. Hanlong has also filed the Certificate of Overseas Investment with the State Administration of Foreign Exchange (SAFE). These actions follow Hanlong's recent investment approval by the Chinese National Development and Reform Commission (NDRC). After the publication of the Mt. Hope project's Draft Environmental Impact Statement (DEIS), the conditions precedent to closing the initial 12.5% fully diluted share sale to Hanlong for $40 million will be substantially completed.

General Moly continues to anticipate both publication of the DEIS and Hanlong's equity investment to occur prior to year end. Under the agreement with Hanlong, Hanlong will increase its interest in General Moly to 25% on a fully-diluted basis, through an additional $40 million equity investment, following General Moly's receipt of its Record of Decision (ROD) and Hanlong's delivery of a $665 million Hanlong-guaranteed loan to be sourced from a Prime Chinese Bank. General Moly continues to anticipate receipt of its ROD by mid-2011. The company's address is 1726 Cole Blvd., Suite 115, Lakewood, CO 80401, [email protected]